Before Specialization in Trade. Assume this is the production possibility for Morofit and Lesofit Production OptionsMorofit Time Lesofit Time 1 Peanut.

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Presentation on theme: "Before Specialization in Trade. Assume this is the production possibility for Morofit and Lesofit Production OptionsMorofit Time Lesofit Time 1 Peanut."— Presentation transcript:

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If Morofit and Lesofit want one t-shirt and 1-Peanut Butter what will be the world gain in T-shirts and Peanut Butter? Production OptionsMorofit Time Lesofit Time 1 Peanut Butter 1 Hour1 Peanut Butter 8 Hours 1 T-Shirt2 Hours1 T-Shirt4 Hours Total Time3 HoursTotal Time12 Hours

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1 T-Shirts for Morofit, 1 for Lesofit, 1 for the rest of the world 1 PB for Morofit, 1 for Lesofit, 1 for the rest of the world Production OptionsMorofit Time Lesofit Time 1 Peanut Butter 1 Hour1 Peanut Butter 8 Hours 1 T-Shirt2 Hours1 T-Shirt4 Hours Total Time3 HoursTotal Time12 Hours